The California Fair Political Practices Commission said it can't determine yet whether Laguna Beach Councilwoman Elizabeth Pearson has a conflict of interest regarding the city's village entrance project due to her employment at Laguna Playhouse, which could be affected by the project.

The commission responded to a request for advice from the Laguna Beach city attorney on Pearson's behalf after questions arose about Pearson's involvement in the project.

The city reached out to the panel last year about Pearson's legal ability to influence or vote on the project. Since January 2012, Pearson has been director of development at Laguna Playhouse, which is 500 feet from the proposed project site. She will leave that position April 30 to become chief executive of Pacific Chorale.

City Attorney Phil Kohn issued a memo to the City Council on Friday that includes the FPPC's response.

State law prohibits a public official from using his or her position to make or influence a decision on an issue that the official has a financial interest in or could affect the official financially.

The FPPC said it couldn't make a determination on a conflict of interest since there is no proposed decision on the village entrance project. An official's interest is determined by his or her position and income within 12 months before a decision.

"We have no further guidance to provide because, like you, we do not know what the future decisions are and how they might affect the Laguna Playhouse," the commission's response said.

Resident Jean Raun said she spoke with Kohn about the matter last week.

"I talked to the attorney about the law and asked if he was secure, because I didn't want any more scandal in the city," Raun said.

The FPPC said Laguna Playhouse is "indirectly," vs. directly, involved in the village entrance issue. The environmental-impact report for the project did not note significant effects on the playhouse, according to city documents.

Pearson can participate in decision making on the project as long as a decision before the council won't affect her economic interests.

The city can write to the FPPC again or apply the commission's standards if a future decision could materially affect the playhouse – for example, if a decision would result in an increase or a decrease of $100,000 or more in the playhouse's gross receipts for a fiscal year.

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